NAR Settlement

The timeline has changed. Did you know that if your current listing agreement references commissions in the MLS, that agreement will have to be modified to remove that clause on or before August 17? If not, you do now! The deadline to make these changes across the board has been moved to on or before August 17, 2024.  This change is due to the class action notice that will be served on all potential class members. 

What does this mean for you? Start getting ready NOW! 

CLICK HERE TO USE OUR SINGLE PROPERTY BUYER AGREEMENT TODAY!

Buyer Agreement Flow & SOP

Your local MLS is now enforcing new rule changes, which include removing compensation fields, monitoring compliance, and ensuring agents secure properly executed buyer agreements before property showings. NAR authorizes MLS to request copies of these agreements to enforce compliance. Failure to comply could lead to MLS fines, and lacking proper documentation may result in the non-payment or return of commissions to escrow.

What does this mean for you?

This settlement destroys Procuring Cause as we know it! Agents only get paid if they have a signed Buyer agreement prior to showing for the buyer’s agent and/or Listing agreement for the listing agent!

Take charge and improve your buyer process. Just like you won’t take a listing without a listing agreement, you won’t tour homes with a buyer without a buyer agreement. As a result, you may want to build in a strategy meeting or consultation into your buyer process prior to showings so that you can build rapport with the customer and articulate your value proposition.  

What does this mean for you?

Use this time with the buyer to help them feel informed and empowered with information about how your skills, knowledge, and resources will best help them accomplish their goals for home ownership. This will help you gain their trust and their signature prior to showing homes. 

Listing Agents Beware. When conducting an open house on behalf of the seller, you may not need a signed buyer agreement for every unrepresented buyer that walks through the door.  However, should the buyer inquire about services or require your assistance with purchasing the home, you will want to get a signed buyer agreement to be paid for your time.  

What does this mean for you?

So just taking a call, answering questions, or performing an activity on behalf of the seller does not necessarily mean you need a buyer agreement. But as soon as your role transitions to performing “brokerage services” on behalf of the buyer, including virtual tours, you need to have an agreement in place.  Brokerage services include, but are not limited to: identifying potential homes, arranging and scheduling showings, writing and presenting offers, negotiating contracts, and other related services. 

eXp has your back. At eXp Realty, we aim to arm our agents with the best mindsets, skill sets, and tool sets to handle the changes ahead. With our agility, we have the following forms coming VERY soon to help you, our agents, navigate the new normal in stride.